Some ranchers like Dale Allee fear that his family will not be able to enjoy the ranch he built for security after he dies. This fear comes after reviewing the federal estate tax that will be applied to his land once he passes.

Allee will leave his 4,200 acre ranch in Pueblo County to his children, but he is greatly worried it will not be theirs. “I just turned 80 last week. You know that that means? That means I’m not going to be around here very long, and somebody’s going to have to pay those taxes,” Allee told the Associated Press.

Many Western ranchers are currently lobbying in Washington to exempt them from the tax that may ultimately force their heirs to sell the land. Often it is sold for commercial development.

“I don’t like subdivisions and I don’t like development,” he said. “We just don’t want to see houses built all over our land.”

As of 2009, the federal government requires heirs with an estate worth more than $3.5 million (owned by a single person) or $7 million (owned by a couple) to pay up to 45 percent taxes.

This means that an operation with 200 to 300 cattle may end up paying $3.5 million.

Terry Fankhauser, executive director of the Colorado Cattlemen’s Association said, “Look at the need for food production in this country. The only way we can meet that growing demand is to keep these farms and ranches in agriculture and incetivize that by getting rid of the estate tax.”

The tax is expected to be completely gone by 2010, but in 2011 any estate worth more than $1 million will be taxed up to 50 percent.

The bill has been referred to the House Ways and Mean Committee.

If you are interested in purchasing a ranch, ranch loans are available. Contact a representative at Farm Plus with any questions you may have about ranch loans. Call 866-929-5585 or visit online for more information regarding ranch loans.